TRAI seeks views on tariffs’ debate

Sat 18 Feb 2017

Amid an ongoing war between incumbent telcos and new entrant Reliance Jio over its predatory pricing and promotional offers, the Telecom Regulatory Authority of India issued a consultation paper on Friday to undertake a review of the tariff assessment process.

The paper, among other issues, has sought views on which tariff offers should qualify as promotional offers, what should be the features of a promotional offer, and whether there is a need to restrict the number of promotional offers that can be introduced by a telecom service provider.

The consultation paper comes after the three incumbent operators – Airtel, Idea and Vodafone, moved TDSAT against TRAI alleging that the regulator failed to prohibit Mukesh Ambani-owned Reliance Jio from violating the tariff regulations by allowing it to continue with its free offers.

In response to complaints, TRAI had said that Reliance Jio’s promotional tariff plans comply with existing regulations and tariff orders, allowing promotional offer that provides free unlimited data and calling to users till March 31.

The consultation, the regulatory authority said, is in line with the decision taken in the meeting held with the CEOs of the telecom firms on January 6, 2017, “to discuss the annual calendar of activities of TRAI for the year 2017, which, included developing a new framework for tariffs in evolving telecommunication sector and on which there was a consensus.”